Torstar, Postmedia probe closed

Competition Bureau says no charges will be laid in newspaper transaction

The federal Competition Bureau has closed its investigation into a 2017 deal between Torstar Corp. and Postmedia Inc., saying no charges will be laid.

The transaction saw 41 community and daily newspapers change hands, with 36 of them subsequently closing down.

The closures prompted concern that the transaction contravened the federal Competition Act.

“Following a review of the available evidence, the Bureau concluded that no further action was warranted,” the competition watchdog announced on its website Thursday.

A spokesperson for Torstar and the CEO of Postmedia both said they were pleased with the announcement.

“We welcome the decision announced today by the Bureau and believe in the important role the Bureau has to play in the Canadian economy,” said Torstar spokesperson Bob Hepburn.

“From the outset we have adamantly maintained that Postmedia has done nothing wrong and now, more than two years later, the Competition Bureau has closed the investigation,” Postmedia president and CEO Andrew Macleod said in an emailed statement.

“We are happy to have this matter and the associated pressure and cost behind us … We will continue to urge the Bureau to apply its considerable resources to address the impacts of foreign digital monopolies on our industry and others in Canada,” Macleod added.

As part of its investigation, the Competition Bureau searched the offices of Torstar and Postmedia, and also conducted interviews with six current and former Torstar employees.

Torstar, a wholly owned subsidiary of Nordstar Capital, owns the Toronto Star, Canada’s largest daily newspaper, six regional daily papers in Ontario and more than 70 weekly community papers in Ontario, as well as several digital properties, including the flagship thestar.com.